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Benefit-based O2O commerce segmentation: a means-end chain approach

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Abstract

We examined Online-to-Offline (O2O) commerce consumers’ market segments and consumption relevant cognitive structures. Laddering interview technique was employed to collect data from 51 O2O consumers in terms of benefits they sought from O2O platforms. A three-group O2O consumer segments were identified based on the benefits they sought, namely Return-sensitive shoppers, Risk-sensitive shoppers, and Rational shoppers, and a corresponding hierarchical cognitive structure model for each sub-group of consumers was developed linking attributes needed to fulfill the benefits and values to reinforce the benefits. The three sub-group O2O consumers were found to be significantly different in terms of the key benefits sought and attributes needed to realize the same benefit sought. Moreover, benefit-based segmentation has shown advantages over the item-based segmentation method used in prior research. This study makes a significant contribution to O2O business regarding consumer purchasing behaviors and segmentation methodology.

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Authors and Affiliations

  1. College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, 211106, China

    Lin Xiao

  2. School of Information Systems and Technology Management, UNSW Sydney, Sydney, NSW, 2052, Australia

    Zixiu Guo & John D’Ambra

Authors
  1. Lin Xiao
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  2. Zixiu Guo
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  3. John D’Ambra
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Corresponding author

Correspondence to Zixiu Guo.

Appendices

Appendix 1

Factors influencing e-commerce purchasing or repurchasing behavior/intention, including O2O. See Table 5.

Table 5 Factors influencing e-commerce purchasing or repurchasing behavior/intention, including O2O
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Appendix 2

SIM for three sub-groups of O2O commerce shoppers. See Tables 6, 7 and 8.

Table 6 SIM for return-sensitive shoppers
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Table 7 SIM for risk-sensitive shoppers
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Table 8 SIM for rational shoppers
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Xiao, L., Guo, Z. & D’Ambra, J. Benefit-based O2O commerce segmentation: a means-end chain approach. Electron Commer Res 19, 409–449 (2019). https://doi.org/10.1007/s10660-017-9286-3

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